§ 52. Mr. REMERasked the Chancellor of the Exchequer if he is aware that there is a leakage in the return of Income Tax through the fact that the tax is not deducted at source from the 5 per cent. War Loan; if he is aware that there has been no check of the register since its inception; and if he will take steps to see that a systematic check is undertaken?
§ Mr. CHURCHILLI am aware that any deviation from the principle of taxation at the source involves a grave risk of leakage of revenue, and my hon. Friend will recognise that the circumstances which led to the deviation in the case, of War Stocks were entirely exceptional. My hon. Friend is under a misapprehension in thinking that there has been no check of the 5 per cent. War Loan Register since its inception. A check of the larger holdings was made several years ago and it is proposed to 834 repeat this check so soon as pressure of work in the Inland Revenue Department permits.
§ Mr. REMERMay I suggest to the right hon. Gentleman—[HON. MEMBERS: "Not"] May I ask the right hon. Gentleman whether he would take the registers of the Bank of England, which should be handed to the inspectors of taxes in the various districts? This would lead to a very large revenue accruing to the Treasury.
§ Mr. CHURCHILLI will take note of the suggestion.